Business zone defends record in row over ‘unfair’ campaign

The BID, which charges firms within its zone one per cent of their rateable value for a range of services, began a second term last month after securing 318 votes from the 596 who took part - a winning margin of just 40.

But now opponents of the scheme, led by Retailers Against the BID (Rabid), have written to the Department for Communities and Local Government calling for the ballot to be declared “null and void”.

They claim that unlike those in favour of the scheme they were unable to campaign against it because they were denied access to the database of businesses involved.

The letter claims: “The ballot was biased towards the ‘Yes’ vote, a vote ‘Yes’ campaign prospectus was sent to all businesses on the council’s database under separate cover, whereas a vote ‘No’ leaflet could not be sent because the council would not release the database.”

But BID manager Kathryn Shillito said Rabid had actively campaigned against the scheme and could have had access to the database if they were representing enough of the firms involved.

She said: “They personally visited businesses and hand delivered them, so why they are saying they were unable to get out their leaflets I have no idea.

“Plenty of pro-businesses rang me and said we have just had Rabid in. It’s an open and democratic process and they are perfectly within their rights to campaign and speak to as many businesses as possible.”

She added: “My understanding of the legislation is they can get access to the database providing they can get five per cent of the total hereditaments (businesses with a rateable value). They can go to the local authority and say we have got five per cent of the businesses and we want access to the database because we have got this representative group.

“Everything we did has been absolutely above board.”

In September the city council apologised for causing the ballot to be scrapped and started again after an out-of-date mailing list was used.

Brendan Arnold, the council’s head of corporate planning and finance, said: “Regrettably we have to stop the current ballot. Rather than risk it being declared void at a later date, we are organising a new ballot and we are sorry for any inconvenience our error has caused.”

The ballot was run by Electoral Reform Services, the UK’s leading independent supplier of ballot and election services.

The Hull BID, the second largest of its kind in the UK, was set up in 2006 with the aim of improving the city centre environment and its commercial output.

It has divided opinion in the city almost from the start, with opponents such as Ted Johnston, who runs Johnston’s Butchers and Delicatessen in Carr Lane, calling the levy a “stealth tax”.

He said yesterday: “All they can do is remove graffiti and they can only do that on private property because it’s the council’s duty to remove graffiti from public buildings.”

But the scheme also has equally vocal supporters.

In August Malcolm Scott, senior partner at Scott’s Property LLP, said he was prepared to take to the streets to argue how important and effective the scheme was.

He said: “I am totally behind Hull BID but I am concerned that some people don’t appreciate the value for money it delivers, and that there is much greater strength with a lot of businesses paying very little than with a few businesses paying a lot. I am prepared to lobby the businesses in the streets around my office and we need to get others to do the same right across the city centre.”

The scheme generated £2m in income from the levy in its first five years, and had operating costs of £614,269 over this period.